The European Green Deal as the EU's recovery strategy
The European Commission has proposed a major recovery plan to help the EU economy recover from the COVID-19 crisis, preparing to pour at least €1 trillion into a broad stimulus programme. To ensure the recovery is sustainable, even, inclusive and fair for all Member States, the European Commission is proposing to create a new recovery instrument, Next Generation EU, within a powerful, modern and revamped long-term EU budget.
The European Commission’s promised green recovery plan will focus on
- building renovation,
- renewables and hydrogen
- clean mobility and
- circular economy
The European Green Deal is Europe’s growth strategy. The investment guidelines for the new Solvency Support Instrument will also reflect the need to prioritise green investments. This will be supported by the 25% of the EU budget spent on climate investments and additional funding for Horizon Europe, reflecting the crucial role of research and innovation in driving the shift towards a clean, circular, competitive and climate neutral economy.
The EU Climate Law and the EU sustainable finance taxonomy will guide investment in Europe’s recovery to ensure they are in line with our long-term ambitions.
Furthermore, The Connecting Europe Facility, InvestEU and other funds will support the financing of the installation of one million charging points, clean fleet renewals by cities and companies, sustainable transport infrastructure and enable the shift to clean urban mobility. Under InvestEU a new natural capital and circulareconomy initiative will mobilise at least €10 billion over the next 10 years. The Commission, also, proposed to strengthen the Just Transition Fund with an additional €32.5 billion. This funding will be used to alleviate the socio-economic impacts of the transition, supporting re-skilling, helping SMEs to create new economic opportunities, and investing in the clean energy transition. The Commission is also making proposals to set up the new public sector loan facility that forms the third pillar of the Just Transition Mechanism. This will be supported by €1.5 billion from the EU budget and €10 billion in lending by the European Investment Bank.
Furthermore, a €15 billion reinforcement for theEuropean Agricultural Fund for Rural Development to support rural areas in making the structural changes necessary in line with the European Green Deal and achieving the ambitious targets in line with the new biodiversity and Farm to Fork strategies.